Family of founder is driving force at Ford

Amid tough times, clan has &#8216;pulled together&#8217; for company

In 2008, Henry Ford III (from left), Elena Ford, Edsel Ford II and Bill Ford met near the company headquarters
to discuss strategies while the American auto industry was in serious trouble. (New York Times)

In 2008, Henry Ford III (from left), Elena Ford, Edsel Ford II and Bill Ford met near the company headquarters
to discuss strategies while the American auto industry was in serious trouble. (New York Times)

Ford's top managers said they have no such worries about their controlling shareholders.

“These people are so steadfast,” Mulally said. “They believe in this company so much.”

The Ford family members own a special class of stock that gives them 40 percent voting control.

“I feel this is one of Ford's greatest assets, and one that GM has never had,” said David Lewis, a business historian at the University of Michigan. “The family has been an oasis of stability through the years.”

The regular, quarterly meetings started after the death of Henry Ford II in 1987. The current generation — with 13 cousins, including Bill Ford — has brought its children into the fold. The meetings now include up to 35 family members.

“After my father died, people in the family needed to start talking,” said Edsel Ford II, a longtime Ford director and Henry Ford II's only son. “The meetings have become like a call to arms.”

In all, five family members work in some capacity or serve on the board at Ford. Besides Bill and Edsel Ford, three fifth-generation Fords are on the payroll.

Elena, Edsel's niece, is a rising executive who is director of global marketing. Her cousin Alessandro Uzielli, son of Anne Ford, works in Ford's Los Angeles office on projects involving the entertainment industry. And Edsel Ford's oldest son, Henry Ford III, is also a full-time employee with the potential to one day join top management.

Uzielli, 42, said being a Ford comes with a “sense of honor and trust.” The last few months have been “very tough at times,” but not nearly enough to shake the family's commitment.

In 2001, the family asserted its power by replacing the chief executive, Jacques Nasser, with Bill Ford, who had been chairman for two years.

By 2006, the company was floundering, and appeared to be in worse shape than GM. Bill Ford sought family support to hire Mulally.

“No question, that was a time of high anxiety for us,” Bill Ford said. “There were lots of events playing out, all of which were very risky.”

Mulally's vision for Ford included shedding brands and operations that Nasser had built up, and borrowing heavily to restructure. To help persuade banks to lend Ford the money, the company canceled its dividend, which cost family members tens of millions of dollars a year.

“Our plan required sacrifices from everybody, including the family,” Mulally said. “But they agreed to do whatever it took to save the company.”

In the spring of 2007, less than a year into Mulally's tenure, some family members, including Bill's sister, Sheila Hamp, and her husband, pushed to hire the Wall Street firm Perella Weinberg Partners, to advise them on long-term strategy — including possible mergers or even a sale.

But Bill Ford and Edsel Ford opposed the move, as did Elena Ford, Edsel's niece. The family voted, and agreed with them.

Elena Ford said the family's strength is rooted in open communications — “everybody can ask whatever they want,” she said — and there's unwavering support once decisions are made.

“We are going through uncharted waters and we're going to stick to our plan,” she added.

Ford is still losing money — $1.4 billion in the first quarter alone — and its cash reserves are shrinking as auto sales have dried up for the entire industry. Even so, Ford family members said they could not envision any situation that would cause them to sell out.

“If this were just a financial investment, the family probably would have been out of it years ago,” Bill Ford said. “This is very much an emotional commitment.”